Gold World News Flash |
- Goldrunner: Has Gold Topped Out? Nope, You Ain’t Seen Nothing, Yet!
- Panic Before the Herd and Win-Win with Silver!
- 2011: Another Banner Year for Gold
- Jan 17 1980 : Silver reaches its all time high - H.L. Hunt and the Circle K Cowboys
- Gold Update
- Gold Price Closed at $1,360.40 Down $26.50 or -1.9%
- Pension Meltdown: Blame it on Wall Street?
- Enter The Twilight Zone: World's Biggest Cocoa Exporter Tells Creditors To Legitimize Corrupt President... Or Face Wipe Out
- In The News Today
- Rosenberg Summarizes This Weekend's Uberbearish Barron's Roundtable
- Fianna Fáiled: Ireland Prints 25% of its GDP in German Euro's
- Debt Bondage From The Economic Treason of Banks
- THE GREAT SILVER SHORT
- More Than Just Gold on the Rise - January 17, 2011
- Working For Profit to Prop Up the Economy
- Products of the Past
- World's Cheapest Commodity
- World's Cheapest Commodity
- Silver Investing: Going Mainstream in 2011
- The Yukon Gold Rush and The #1 Newsletter Writers
- Sunk Costs of Empire
- Taleb: The Fed Will be Gone in 25 Years
- Eric Coffin: Winter White Sale in the Yukon
- The reasons for gold's bull run remain in place
- Has Gold Topped Out? Nope, You Ain’t Seen Nothing, Yet!
- 2011 Financial Meltdown Fast Approaching
- Ben Davies is a total badass who LOVES Silver!
- Martin Luther King Jr.: Stop the Wars in Iraq and Afghanistan and Stop the Mugging of the Middle Class and Poor by the Wealthy
- IMF’s hostile raid of Irish assets nearly complete; wealth transference with help of a corrupt government has destroyed the country’s independence.
- ‘Crash JP Morgan’ buy silver / kauf Silber (does anybody know which coins these are?)
- The US Deficit Recovery Program and Other Fallacies
- Schmidt's Gold Thoughts - 17 January 2011
- An Interpretation of the China Silver Short Theory and Fractional Reserve Bullion
- Silver Wheaton: A Double in Waiting?
- Xtierra Inc. One of TSX Venture’s Best Kept Secrets
- LGMR: Gold Speculation Hits Multi-Month Lows, "Correction May Last Longer" Says Faber
- Reader Voted Favorite Posts Of 2010
- HERE WE GO AGAIN
- Has Gold Topped Out? Nope, You Ain’t Seen Nothing, Yet!
- Why Gold Is Still a Good Investment
- Jim's Mailbox
- Inflation Is Here
- Precious Metals Default Scenarios
- Dismal Holiday Shopping Season Dooms U.S. Economy
- The Coming Flood of Yuan
- "End of America" is Nigh
- Inflation and the Damage Done
- John Hathaway: Debasement, spending sprees argue for gold
- Only gold will hold its own among currencies, Hinde study concludes
- Bullishness From COT and the Physical Market for Silver
| Goldrunner: Has Gold Topped Out? Nope, You Ain’t Seen Nothing, Yet! Posted: 17 Jan 2011 06:00 PM PST [B]Gold On The Verge of Ripping Higher Into May and June[/B] A Gold Bull Market is much like a bucking bronco in the Old West – constantly trying to buck investors out of the saddle – as many in the Precious Metals universe are calling an intermediate-term top for Gold. Some are even suggesting that we have seen the final top in the Historic Gold Bull. We have a completely different view maintaining that we are very close to the juncture where Gold starts another rip higher into May or June. Let me explain. So says Goldrunner (www.GoldrunnerFractalAnalysis.com) in an article reformatted and edited [...] below by Lorimer Wilson, editor of www.munKNEE.com, for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Goldrunner goes on to say: We believe such a significant move will just be one more step up for the developing Gold parabola ...
| ||||
| Panic Before the Herd and Win-Win with Silver! Posted: 17 Jan 2011 06:00 PM PST
| ||||
| 2011: Another Banner Year for Gold Posted: 17 Jan 2011 05:55 PM PST
| ||||
| Jan 17 1980 : Silver reaches its all time high - H.L. Hunt and the Circle K Cowboys Posted: 17 Jan 2011 05:30 PM PST
| ||||
| Posted: 17 Jan 2011 03:53 PM PST Many commentators like to speculate on where the dollar-denominated gold price is ultimately headed. Some claim that it is destined to reach $3,000/oz, others claim that it won't top until it hits at least $5,000/oz, and some even forecast ... Read More...
| ||||
| Gold Price Closed at $1,360.40 Down $26.50 or -1.9% Posted: 17 Jan 2011 03:29 PM PST Gold Price Close Today : 1,360.40 Change : -26.50 or -1.9% Silver Price Close Today : 28.30 Change : -.94 or -3.3% Platinum Price Close Today : 1,813.40 Change : -5.20 or -0.3% Palladium Price Close Today : 788.45 Gold Silver Ratio Today : 48.07 Change : 0.66 or 1.01% Dow Industrial : 11,787.38 Change : 55.48 or 0.5% US Dollar Index : 79.33 Change : 0.25 or 0.3% Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com Phone: (888) 218-9226 or (931) 766-6066 © 2010, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't. 
| ||||
| Pension Meltdown: Blame it on Wall Street? Posted: 17 Jan 2011 03:08 PM PST
Nicole Bullock of the FT reports, States warned of $2,500bn pensions shortfall:
Mr. Kramer is right to sound the alarm bell on public pensions, but "smoothing" is only part of the problem. Besides, marking everything to market, including private markets, would wreak havoc by causing unnecessary volatility. Some think a larger part of the blame lies squarely with Wall Street. In an op-ed article for USA Today, Gerald W. McEntee is president of the American Federation of State, County and Municipal Employees, writes, Opposing view on public pensions: Blame Wall Street:
Mr. McEntee is right, Wall Street's reckless behavior and politicians foregoing pension payments significantly contributed to the huge pension deficits, but that's only part of the problem. The other problem is that public pensions were using rosy investment rates of returns to discount their liabilities, which we now know are much higher than what is publicly stated. There is plenty of blame to go around. It's not just Wall Street. Poor governance, rosy investment assumptions, and bad political decisions all played a role too. But Wall Street's reckless behavior remains one of the biggest factors behind the pension meltdown. This behavior hasn't changed much post-crisis, which means private and public pensions remain very vulnerable in this wolf market.
| ||||
| Posted: 17 Jan 2011 02:38 PM PST
And so things move from the simply violently revolutionary to the outright surreal, and once again they originate in Africa where today's TheOnion reality seems to feel most at home in practice (unlike its mostly theoretical, for now, US counterpart). Ivory Coast, the biggest producer of cocoa, today told bondholders of $2.3 billion in debt that unless creditors legitimize the corrupt incumbent regime, and recognize voted out president Laurent Gbagbo, then the country will not make an interest payment on its bonds which already are in a grace period, and will essentially default, unless the political gridlock is resolved in two weeks. “It’s a joke, right?” said Phillip Blackwood, head of emerging markets at Sydbank A/S, Denmark’s fourth-largest bank and holder of Ivory Coast debt. No, unfortunately it isn't. And just like Tunisia is a harbinger of the food riots to come to the developed world, so Ivory Coast is a leading indicator of how the world's greater debtor - the US Treasury - will one day negotiate with its own creditors. As both countries are bona fide banana republics, it won't be much of a stretch... More on this macabre comedy from Bloomberg:
Probably the main take home message here (aside from going long cocoa again in advance of these blasting through the roof again) is that he who controls the army is more powerful than he who controls the central banks... At least in Africa, these appear to be different entities. Not so much in the "developed" world.
And what truly makes this situation beyond surreal and positively undescribable, is that bankers chime in with advice to, wait for it, buy the fucking dip.
Ignore the fact that the country is likely about to be next to join the revolution bandwagon:
We give Gbagbo a week before he follows in Ben Ali's footsteps to the Club Med for deposed dictators (with lots of gold). Or not: according to the WGC, the country does not even have one ounce of gold in its central bank coffers. And we are not sure if various non-extradition countries will accept deposed tyrants in exchange for even a bumper crop of cocoa. Unless, of course, Gbagbo somehow manages to get the price of chocolate to rival that of 24K gold in the next few weeks. Which is why we are sure that Blythe Masters and her team were recently in Yamoussoukro discussing the most effective way to corner the cocoa market (paper Cocoa ETF?), thus getting the price of the sweet powder up by a few trillion percent (in exchange for a nice 25% of all upside going to Jamie Dimon's firm of course). h/t Mike
| ||||
| Posted: 17 Jan 2011 01:23 PM PST View the original post at jsmineset.com... January 17, 2011 10:41 AM Dear CIGAs, Just as we can go anywhere through anything here in Connecticut’s winter weather, Gold will defy the bears going to and through $1650. Jim Sinclair's Commentary The Conservative backlash has one endemic problem. Jim Sinclair’s Commentary Keep in mind that the manipulators can have short term influence on the gold price but it is debt that moves gold. The manipulators cannot affect that therefore gold will trade at $1650 and better. U.S. debt tops $14 trillion, nears ceiling Monday, January 17, 2011 The United States just passed a dubious milestone: Government debt surged to an all-time high, passing $14 trillion – $45,300 for every person in the country. That means Congress soon will have to lift the legal debt ceiling to give the almost maxed-out government an even higher credit limit or dramatically cut spending to stay under the current cap. Either way, a...
| ||||
| Rosenberg Summarizes This Weekend's Uberbearish Barron's Roundtable Posted: 17 Jan 2011 01:03 PM PST
David Rosenberg summarizes the key points from this weekend's Barron's roundtable. Pay attention to what Fred Hickey has to say. He pretty mich covers it all... SQUARING THE ROUND TABLE The Barron’s Roundtable was even more raucous than usual and there were some truly remarkable comments that need reprinting: Felix Zulauf: “You also have a tremendous social division. In the U.S., the top 20% of the population owns 93% of the financial assets. That tells you the average guy is in bad shape. He spends what he makes, and at the end of the month he’s even." Fred Hickey added to that sentiment: “Last August, things weren’t looking so well. Then Ben Bernanke gave a speech in Jackson Hole that implied the Fed would engage in quantitative easing, and from that point forward, the Dow added 1,400 points. Gasoline prices went from $2.65 a gallon to well over $3.00 ? a $50 billion hit to consumers. Food prices rose to record levels. It caused a major imbalance in the economy. If you own financial assets, you’re doing quite well. If you don’t, you’re getting hit by higher food prices, higher insurance costs, higher everything, and you’re not getting any interest on your savings ... The economy has structural problems and we aren’t dealing with them. Money-printing won’t work, yet that’s the prescription we continue to give the patient. If the Fed keeps printing after June we’ll have higher gasoline and food prices and more imbalances until this ends. And at some point, it will end, because the dollar will fall apart. What we are doing now makes everything appear rosy. But it is devastatingly terrible policy for the long-term.” Geez, where have you heard that before. Hope Fred isn’t getting any hate mail. Marc Faber: “If you measure the stock market not in dollars but gold, it is down 80% since 1999. I no longer regard the U.S. dollar as a valid unit of account. People shouldn’t value their wealth in dollars because one day, in dollars, everyone will be a billionaire." That zinger is too good. Bill Gross one-upped that one: “We are looking at a currency that almost certainly will depreciate relative to other, stronger currencies in developing countries that have lower levels of debt and higher growth potential. And, on the short end of the yield curve, we are looking at creditors receiving negative real interest rates for a long, long time. That, in effect, is a default. Ultimately, creditors and investors are at the behest of a central bank and policymakers that will rob them of their money.” As for the market action for 2011, we have two giants in our camp. Zulauf: “The market will range between 10% up and 10% down.” Faber: “I expect to see the market move up and down at least 20% this year, as it did in 2010.” The case for classic long-short hedge fund strategies is compelling if these two pundits are anywhere close to being right. Jimmy Rogers wasn’t on the roundtable but in a separate interview with Bloomberg, he may well have had the best quote of the past decade: “Paper money is made of cotton, and I’m long cotton, by the way. One reason I’m long cotton is because Dr. Bernanke is out there running the printing presses as fast as he can.” How great is that ? short the U.S. dollar and go long cotton. Another non-roundtable member that had a quote worth mentioning over the weekend was Christina Romer in her Economic View piece on page 5 of the Sunday NYT biz section (titled What Obama Should Say About the Deficit). Talk about brutal honesty: “President Obama needs to explain that while these cuts will be painful, there is no way to solve our problems without shared sacrifice.” “Shared sacrifice”. Wow. For a nation that sent kids overseas to fight wars against terror states while cutting taxes here at home to stimulate consumption of iPads and diamond necklaces. A nation so fearful of a “double dip’ that it raided Social Security to keep the retailer cash registers ringing for the New Year. So what Ms. Romer had to say about the need to stop the excessive borrowing madness ? the U.S. government now spends 1.6 for every one dollar it brings in with respect to revenues ? was telling: “Even with bold spending cuts, there will still be a large deficit. The only realistic way to close the gap is by raising revenues. Some of it can and should come from higher taxes on the rich. But because there are far more middle-class families than wealthy ones, much of the additional money will have to come from ordinary people.” The era of spending-beyond-our means denial is on its last legs. From Gluskin Sheff
| ||||
| Fianna Fáiled: Ireland Prints 25% of its GDP in German Euro's Posted: 17 Jan 2011 12:16 PM PST
The ECB setup a unique Sovereign bond carry with Irish banks, allowing support for their financing needs via deposits of Irish Sovereign bonds held as collateral. This mechanize broke down in the fall of 2010 as liquidity dried up beyond the capacity of the ECB to help out. The Washington Post has a great graphic that shows Europe’s Financial contagion as cross holdings through both Banking and through Trade . The implications are clear, the cross holdings are significant. The ECB is reported to have provided up to 130+ Billion Euros in direct support to the Irish banks, by allowing the banks to park Irish Sovereign debt at the ECB for collateral. This has driven up the internal leverage of the ECB enough that it needed to be recapitalized with new funds in December 2010. The fact that the ECB needed to be recapitalized just as the impact from the Irish bailout of November hit home to the political leaders, though the real context of it was missed by the main stream media. The EU appears to have been caught in a situation that it could not contain the Irish funding needs, while needing to recapitalize the ECB Balance sheet to continue operations.
Ireland Central Bank was allowed, with or with out permission, to print up up new Euros without new sovereign debt issued behind them. By December of 2010, the EU appears to have been more worried about the appearance of the ECB balance sheet as a whole, than of rogue individual activity by its member states. Publicly, the EU core nations agreed that the ECB was great candidate for recapitalization due to the support it has been providing the PIIGS. In hindsight, the attention of the market moving to Portugal or Spain was a misdirection of where the real attention needed to be, and that is Ireland still. The bail out of Ireland, funded currently from their own retirement savings, has not been ratified by their government. The ECB has not started to poured funds from the Stabilization fund into Ireland yet, as they await ratification of the bailout. The bailout, like a ticking time bomb has not been ratified yet, and if Fianna Fail’s 1 vote coalition collapses before the vote, all bets are off as to it ever being passed.
A second vote of No Confidence has been called in the Parliament meeting that is scheduled for next week. While the coalition is expected to hold together through both votes, it is possible that the Irish bail-out will be held up by a collapse of the current caretaker coalition in Parliament. If this happens, all bets are off concerning ratification or even continuation of the bail out. The above is all said, to preface what is next. The Irish Central Bank has crossed the Rubicon in European Union currency terms. They have printed up about 25% of their GDP in electronic credits, and stuffed those credits into their banks. These deposits, if you will, do not have new debt issued behind them.
While this has happened before in history, it has not happened in the Euro currency project officially before today. This act is going to move the monetary policy of the union, to the individual capitals. The capacity to print electronic credits, with out the creation of cash currency or debt, is a new wrinkle in the economic landscape. The implications and ramifications will take a while to appear, but “Mark” my words, Germany both as a people, and as a political organization will notice this event. The German people now find themselves captured in a currency where neighbors who are in political and financial stress, have the capacity to print up German Euros on demand. This is Germany’s worse nightmare as both a nation and a people. I dare say, you could not design a more frightening prospect for the “United German States”, than to find their currency diluted on demand by reckless neighbors. In the coming weeks, and I say that because thing rarely happen quickly in life, Europe is going to have a Sovereign crisis of epic size. They will have to decide what happens next, and do so rather quickly.
If Ireland can get away with this printing operation, let’s consider some of the ramifications of their actions when scaled to other economies of larger size. The Irish have printed up the equivalent of 25% of their GDP. If we accept that GDP is equal across economies, their actions are the equivalent of…
EU politicians have known about Ireland’s decision to print currency for weeks now. They have had time to consider their response to Ireland’s dilution of the Euro. I do not expect an initial reaction in the currency markets, as this kind of event takes time to be absorbed by all stakeholders in the Euro. The Celtic Tiger has made their move and resorted to naked currency printing, to support its banks. The next move belongs to Europe and it’s going to be interesting to see how this plays out in the public arena’s. We know who is first now, what CB will be second?
Confessions of a Macro Contrarian www.jackhbarnes.com
| ||||
| Debt Bondage From The Economic Treason of Banks Posted: 17 Jan 2011 12:05 PM PST The fall of nations is a real possibility, pain for others, Brazil to wage trade wars, Ireland hurt with disastrous borrowing policy, the fault for tragedy is upon the banks, Europe not safe from bankruptcies, the Fed strives to control, the dilemmas of free trade, globalization, and terrorism, the wealth of paraihs hidden in Swiss banks. Between now and the end of the year, most likely in the fall, we'll see major financial and economic problems in Greece, Ireland, Portugal, Belgium, Spain and Italy. Those events will sorely test Germany, France, Holland and Austria. Over and over we hear announcements from Brazil of trade wars. Brazil is deliberately reining in their currency, the real, due to its strength. They have imposed reserve requirements on domestic banks' foreign exchange positions. These are taxes on investments and de facto currency controls. Such actions are very good moves that cause indirect higher gold prices. In Ireland harsh measures are being taken. Public spending will be cut 12%. Added to that is a tax increase that would be a reduction of $7.8 billion. Public services and the minimum wage will be cut as well. The wealthy will pay more and child support payments will fall. While the above troubles manifest themselves the US goes merrily on its way like nothing was wrong. Americans have been pre-propagandized, as they were under stimulus - one into believing a recovery is in progress. We don't share that prediction. The Irish and others understand their problems, but Americans cannot come to grips with them. More Here.. 
| ||||
| Posted: 17 Jan 2011 11:50 AM PST Jesse http://jessescrossroadscafe.blogspot.com/ with more details about JPM and the great silver short. This article makes me more and more skeptical about the metal ETFs. I would stay away from GLD and SLV. I don't think the banks really have the metals in their vaults. Keep buying physical silver and gold. This will keep the pressure building [...]
| ||||
| More Than Just Gold on the Rise - January 17, 2011 Posted: 17 Jan 2011 11:42 AM PST More Than Just Gold on the Rise - Casey's Daily Dispatch [LIST] [*]Sign Up Now! [*]| [*]RSS Feed [*]| [*]Print this [*]| [*]Visit the Archives [*]| [*]Email to a Friend [*]| [*]Back to All Publications [/LIST] January 17, 2011 | [url]www.CaseyResearch.com[/url] Dear Reader, Usually every morning I wake up to see commodity prices inching higher on the screen, but today I received the news in a non-traditional way. In the early morning hours, I caught a crystal meth addict in the act of stealing scrap metal from my backyard. I certainly didn't think the stuff was worth the bother to trespass ...
| ||||
| Working For Profit to Prop Up the Economy Posted: 17 Jan 2011 11:30 AM PST Everybody seems to be complaining about the unemployment rate, mostly (I suspect) those who are unemployed. Being but a heartbeat away from that dismal fate myself, due to my crippling handicap of Lazy Bum Syndrome (LBS), I empathize with their plight. Naturally I am also laughing scornfully at anybody who thinks that, perhaps as a result of a miracle, the cycle will slowly turn around, things are going to get better, albeit slowly and surely, and jobs are going to gradually begin to appear sometime soon, flowers will again bloom, the sun will again shine, and over time unemployment will fall until, one day, jobs paying The Big Bucks (TBB) are everywhere, and everything will be fine – better than fine! – again. Hahahaha! Of course, there are those who are so drug-addled, drunk or mentally ill that they cannot properly interpret my Mogambo Laugh Of Scorn (MLOS), ringing loud and clear, as it does, across the fruitful fields and bustling cities of this great country, echo...
| ||||
| Posted: 17 Jan 2011 10:00 AM PST You know what else is a product of the past? Solar panel manufacturing in Massachusetts. The state gave Evergreen Solar at least $45 million in subsidies. "Green" technologies got help from the federal government too – in the form of tax breaks. But last week, the company said it was moving its manufacturing business to…China! And guess what else is a product of the past – Paul Krugman. The New York Times columnist tries to explain the division in US politics as a split between Republicans, who want less government and more liberty, and Democrats, who want more government and more fairness. Yeah, yeah… In Krugman's simpleminded world…it is a struggle between good and evil…smart and dumb…progress and backsliding. He sees the democrats as the good guys. The republicans are bad guys. Such a simpleton's world must be a comfort. You don't really have to do much thinking. Everything is black. Or it is white. Too bad for Krugman, but most of the world is actually gray. If the republicans were so squarely in favor of limited government and liberty, how come they didn't actually cut government spending when they had the chance? They ran the show for years. And during those years government spending went up faster than it did under the democrats. A look back over the last 100 years finds trends that go way beyond republican or democratic administrations. Almost every year, the reach of the federal government expanded. More people were covered by more programs…with more debt and spending obligations pushed farther into the foggy future. Now, according to Prof. Laurence Kotlikoff, the full measure of that unfunded, largely off-the-books, debt is over $200 trillion – making the US government, effectively, insolvent. And that didn't get there just because of democrats. Nor will electing a republican make it go away. And guess what else. If you look at the situation here in France, you see much the same thing. The cultural references are different. The debaters use different words and different concepts. There are no republicans…no democrats. And yet…except for the fact that France no longer has imperial aspirations…the situation is much the same. The government has promised everything to everybody. Look…according to our new Daily Reckoning theme…political parties, voting, the blah, blah of partisan debates…as well as Paul Krugman… …they are all almost irrelevant…all "products of the past"… …relics…emblems…icons…symbols… …full of sound and fury, but signifying nothing. The real trends are bigger than that. What is at stake here is a model of government that began with Otto von Bismarck. It is a model in which the state supposedly serves the interests of the citizens. (Under the previous model, there were no citizens…just subjects who owed a duty of obedience to the sovereign…and in exchange received protection.) In Bismarck's model, citizens give up a portion of their output…and stand ready to protect the state with their lives. In return, the state gives them the right to participate (through elections etc)…provides protection from foreign states and domestic outlaws…and makes sure that their physical needs are taken care of. This model seems to be headed for bankruptcy. The big question is: when the state is unable to provide the benefits it has promised…what will happen? Will the masses accept less? Or will they revolt? Or will a new model evolve…peacefully? Stay tuned. Regards, Bill Bonner, Products of the Past originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
| ||||
| World's Cheapest Commodity Posted: 17 Jan 2011 09:51 AM PST | ||||
| Posted: 17 Jan 2011 09:51 AM PST | ||||
| Silver Investing: Going Mainstream in 2011 Posted: 17 Jan 2011 09:45 AM PST | ||||
| The Yukon Gold Rush and The #1 Newsletter Writers Posted: 17 Jan 2011 09:40 AM PST The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! January 17, 2011 02:35 PM As you know I’m very fond of the Yukon Gold rush and believe the Coffin Bros are the best newsletter writers in the junior resource business (Yes, better than me!). Excellent article about both [url]http://www.grandich.com/[/url] grandich.com...
| ||||
| Posted: 17 Jan 2011 09:40 AM PST The 5 min. Forecast January 17, 2011 01:18 PM by Addison Wiggin - January 17, 2011 [LIST] [*] Cost of empire: U.S. investment of $349 million in African dictator now at risk... [*] ...But the dictator absconds with $66 million in gold [*] Chris Mayer on two consequences of the Global Food Crisis, Part 2 [*] Seven straight weeks of stock market gains... and why they might not be over [*] How Starbucks’ new super size is actually a new instance of short-sizing [*] Do small businesses need credit? Two readers square off [/LIST] Before Zine al-Abidine Ben Ali fled Tunisia on Friday, French intelligence agents say his wife Leila Trabelsi showed up at the central bank and collected 1.5 metric tons of gold -- roughly $66 million worth. Ben Ali’s men tried to raid the central bank yesterday to grab more gold, a Tunisian economist living in exile adds, but the army turned them back. That’s the trouble with trying to maintain an empire. It gets very expen...
| ||||
| Taleb: The Fed Will be Gone in 25 Years Posted: 17 Jan 2011 09:23 AM PST In the video below, Nicholas Nassim Taleb, author of The Black Swan, is interviewed about the economic crisis by the National Journal's Matthew Cooper for the Washington Ideas Forum at the Newseum in Washington, DC. Taleb speaks openly about his disdain for Geithner, Krugman, and a raft of other "economists" that failed to see the crisis coming and don't understand how to respond to it. Here are a few of his thoughts, paraphrased…
You can view the clip below, which came to our attention via The Daily Bail in its post on Taleb publicly ridiculing Geithner and accusing Krugman of stealing assets from grandchildren. Taleb: The Fed Will be Gone in 25 Years originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
| ||||
| Eric Coffin: Winter White Sale in the Yukon Posted: 17 Jan 2011 09:01 AM PST Source: Brian Sylvester of The Gold Report 01/17/2011 What do tigers, fancy coffee drinks and an Egyptian god have in common? According to Eric Coffin, coeditor of the Hard Rock Analyst (HRA) family of publications, they all are individual opportunities in the larger area play he sees opening up in the Yukon. The Gold Report: You and your brother David will be making online presentations for The Yukon Room, an online investment conference focusing on the Yukon—perhaps the hottest area for gold exploration. What do you plan to discuss? Eric Coffin: Part of what we want to cover is why we consider the Yukon an area play. Area plays are different from your average speculation because you're not speculating on just a given company, you're speculating on how the play as a whole will progress. You're speculating on the success of the lead companies in that play, regardless of whether you're actually trading those companies. This is the first time in 15 years that we...
| ||||
| The reasons for gold's bull run remain in place Posted: 17 Jan 2011 08:45 AM PST by David Levenstein One major factor driving the price of gold higher is the high level of national debt in the US as well as the Eurozone. Essentially, these regions are either bankrupt or about to become bankrupt. And, as the levels of debt, in particular that of the US is so high, there is no other way to finance this debt apart from issuing new debt. But, this is nothing more than a Ponzi scheme and the eventual outcome could be a total collapse in the US dollar. However, central bankers are hoping for a miracle which will suddenly return these economic giants to a new period of prosperity that will create massive economic growth and low levels of unemployment. The gamble is whether or not these economies will recover before their currencies collapse. Judging by the recent bond auctions in Europe, perhaps some of the worst skeptics may be convinced that this might be possible, However, just because the recent bond auctions in Portugal, Spain and Italy were successful, it does not mean the sovereign debt crisis in the Eurozone has been resolved. This is merely a temporary reprieve for the euro and these countries, and during the course of this year, I am convinced that we are going to see a further deterioration of the debt crisis which will cause the euro to drop further. And, while this is happening, despite the current exuberance on Wall Street, the US dollar is also headed for further losses this year. … While there are other factors such as high inflation and geopolitical instability, with the high levels of debt in the US as well as the Eurozone combined with very robust demand for physical gold from China and India, there is no doubt in my mind that the price of gold is headed higher, and what we are experiencing at the moment will turn out to be another correction in this huge bull market. [source]
| ||||
| Has Gold Topped Out? Nope, You Ain’t Seen Nothing, Yet! Posted: 17 Jan 2011 08:44 AM PST A Gold Bull Market is much like a bucking bronco in the Old West – constantly trying to buck investors out of the saddle – as many in the Precious Metals universe are calling an intermediate-term top for Gold. Some are even suggesting that we have seen the final top in this Historic Gold Bull. We have a completely different view maintaining that we are very close to the juncture where Gold starts another rip higher into May or June. Let me explain.
| ||||
| 2011 Financial Meltdown Fast Approaching Posted: 17 Jan 2011 08:40 AM PST Despite the best efforts by the American mainstream financial media, the eager PR division of the United States Dollar Ponzi Scheme, to paint the rosiest of rosy pictures for blindly optimistic readers, the stubborn image of a debt-swollen jobless behemoth economy slowly toppling persists. No matter how much U.S. departmental data is primped, polished, and primed, no amount of lipstick is going to transform this fat pig into a princess.
| ||||
| Ben Davies is a total badass who LOVES Silver! Posted: 17 Jan 2011 08:07 AM PST Eric King interviews Ben Davies of Hinde Capital Share this:
| ||||
| Posted: 17 Jan 2011 08:07 AM PST
The Defense Department’s general counsel said that he believed Martin Luther King, Jr., might have supported the current wars:
That is easily disproven. As King said in 1967:
King also proclaimed in 1967:
King lamented that the United States had become the “greatest purveyor of violence in the world today, said the world "is sick with war", and said that "war is not the answer." King said:
And he warned that the deep malady of the American spirit is our perverse devotion to what he called the "giant triplets" of "racism, extreme materialism, and militarism." Indeed, if one understands King's core philosophies, the Pentagon's statement becomes even sillier. Initially, as Pulitzer Prize-winning author Chris Hedges points out:
In other words, King believed that his Christian faith required him to fight injustice. That is why King said that we have to fight against "systems of exploitation and oppression."
Adherents of the philosophy of ahimsa don't believe that some wars are jusitifed ... they believe that we shouldn't harm any person or even any critter if we can help it (the most extreme followers of ahimsa are the Jain sect of India. They are so extreme that they sweep the path ahead of them when they walk so that they will not accidentally squish any bugs. Neither Gandhi or King were Jainists, however, this extreme example helps to explain the basic idea.) Additionally, King fought against economic injustice as well. For example, he said:
As Roger Bybee writes today:
And so - if King were alive today - it is certain that he would be demanding an end to the wars in Afghanistan, Iraq and elsewhere, and an end up to the mugging of the middle and lower classes by the wealthy.
| ||||
| Posted: 17 Jan 2011 07:57 AM PST Irish government nears collapse Share this:
| ||||
| ‘Crash JP Morgan’ buy silver / kauf Silber (does anybody know which coins these are?) Posted: 17 Jan 2011 07:43 AM PST Share this:
| ||||
| The US Deficit Recovery Program and Other Fallacies Posted: 17 Jan 2011 07:38 AM PST Products of the past…doomed… Chinese President Hu Jintao: the US dollar-based monetary system is a "product of the past." He is right about that. And last week two major US credit agencies – Moody's and Standard and Poor's – underlined the point. They said America's triple A credit rating would be lost if the nation continues to borrow so much money. Amen to that, brother… But how can the US borrow less? Ben Bernanke says the US economy will probably grow between 3% and 4% this year. Pretty good, huh? We can stop worrying, huh? Wait a minute. We don't know if the US economy will grow this year…and neither does Ben Bernanke. But even if it were to grow at 3% to 4%…would that mean we were enjoying a genuine recovery? Could the US dollar-based monetary system hold up after all? Could it surprise the Chinese and be a product of the future as well as of the past? Let's see how the present economic model works. You spend $10 trillion on bailouts and stimulus. This puts the whole country on course for bankruptcy…where the Chinese are telling you that your money is history…and the rating agencies are threatening to take you down a notch or two. But for your trouble you get, say, 4% growth. Hmmmm…4% growth is equal to about $560 billion more GDP. But don't look too closely. Much of this extra GDP is debt-fueled government boondoggling which adds nothing real to the nation's wealth. But in order to keep this "growth" going, you have to continue to run deficits – of about a trillion dollars a year. Hold on…what kind of business is Ben Bernanke running? It costs more in deficit spending than you get in positive GDP growth. Well, maybe you lose money every year…but you can make it up in the long run! Hold on… The deficits are expected to run 5% to 10% of GDP for years. Maybe forever. If the growth rate is only in the 3%-4% range, it will mean that debt always outgrows growth. In fact, that is exactly what almost every economist projects. Then, what's the point? Well, maybe deficits can be cut…and the growth rate will pick up? Hey, anything is possible. And since we're starting out in 2011 with a positive attitude…we're ready to believe anything. And maybe that's what gold speculators were thinking on Friday. They sold gold – taking the price down $26 an ounce. Gold rises as confidence in the financial system falls. If gold is falling, it must mean the confidence in the Bernanke, Geithner team is increasing. Based on the evidence so far, we'd have to take the other side of that bet. If Bernanke & Co. have any idea what they are doing it is not apparent from the public record. Even now, in the 5th year of the Great Correction, they still seem unable to see what is going on. Bernanke: "We got in trouble in the first place by making too many bad loans, right. So you've got to make good loans. We've got to have credit worthy borrowers." It may be that, in private, Bernanke has a clearer view of things. But we cannot tap his phone or channel his dreams. All we have to go on is what he says…and does. So far, he has said or done nothing that gives us confidence in the man. He's right: we got into trouble by making too many bad loans. But why did "we" do that? Because the Fed lent money too cheaply! It encouraged speculation and risk taking – especially by the banks, who must have known that they would be bailed out if they got into trouble. And how could the Fed remedy the situation? Easy. It could raise rates – just as Paul Volcker did. It could put the squeeze on speculators. It could raise reserve requirements. It could allow the banks to go bust…send them a message they wouldn't forget. But what has Bernanke done? Just the opposite. He has rewarded the reckless speculators by buying up their bad bets (adding $1.7 trillion in trashy mortgage backed securities to the Fed's core holdings). He has cut rates even more…bringing the effective rate down to zero for privileged borrowers. And he has created the illusion of "recovery" – by goosing up prices of stocks and commodities. Bad policies. Bad in the short run. Worse in the long run. Bill Bonner The US Deficit Recovery Program and Other Fallacies originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
| ||||
| Schmidt's Gold Thoughts - 17 January 2011 Posted: 17 Jan 2011 07:16 AM PST As everyone seems to know, and as you have read endlessly in innumerable reports, the Federal Reserve has expanded its balance sheet by more than two trillion dollars. At present is in the process of adding another six hundred ... Read More...
| ||||
| An Interpretation of the China Silver Short Theory and Fractional Reserve Bullion Posted: 17 Jan 2011 07:14 AM PST
| ||||
| Silver Wheaton: A Double in Waiting? Posted: 17 Jan 2011 07:09 AM PST By Dr. Steve Sjuggerud Monday, January 17, 2011 Silver Wheaton (SLW) has one of the best business models I have ever seen… It could make a billion dollars in profits in 2013… yet it has less than two-dozen employees and basically no operations. Its "business" is driving to the bank and cashing royalty checks. When your business is depositing big checks payable to you, it's near impossible to lose money. The biggest expense for a royalty company is income taxes… but Silver Wheaton has found a way to pay no income tax. It's based in the Cayman Islands. Silver Wheaton cashes royalty checks on silver – gold's redheaded stepchild. And if silver simply stays where it is, Silver Wheaton shares should nearly double by 2013. Here's how it works… Silver Wheaton approaches gold mining companies about buying their "pesky" silver byproduct. You see, gold companies want to be primarily gold producers, not gold-and-silver producers. But because s...
| ||||
| Xtierra Inc. One of TSX Venture’s Best Kept Secrets Posted: 17 Jan 2011 07:00 AM PST By James West MidasLetter.com January 17, 2011 Xtierra (TSX.V:XAG) has to rank among the TSX Venture’s best kept secrets. With the advanced Bilboa silver-zinc-lead project in Zacatecas, Mexico in feasibility with a 140 million ounce silver equivalent resource, and trading at a market cap of $14 million, the disparity between the reality and the should-be makes this a nearly too-good-to-be-true story. But while developing the understanding of the project and the company for this piece, the reasons for the low price become clear. (This is all of course my own speculation.) The company is owned 60% by Minco PLC, and AIM-listed company in based in London, and a further 18.1% is owned by Pacific Road Resource Funds. Pacific Roads has an option to provide construction financing up to $32 million dollars, and I assume Minco would do the rest, since the budget is anticipated at a paltry $50 million. If you were going to finance a mine, would you rather do it at $0.20 a s...
| ||||
| LGMR: Gold Speculation Hits Multi-Month Lows, "Correction May Last Longer" Says Faber Posted: 17 Jan 2011 06:13 AM PST London Gold Market Report from Adrian Ash BullionVault Mon 17 Jan., 08:35 EST Gold Speculation Hits Multi-Month Lows, "Correction May Last Longer" Says Faber THE PRICE OF GOLD bounced vs. the Dollar in London on Monday morning, trading unchanged from Friday's 8-week closing low at $1361 per ounce as European stock markets and commodities also held flat. With New York closed for Martin Luther King Day, US Treasury bonds were unchanged but the Dollar whipped around $1.33 to the Euro. Following Friday's 0.5% rise in China's banking reserve ratio – the seventh rise aimed at stemming credit inflation in the last 12 months – Shanghai's stock market today dropped more 3% after the local municipal government said it will soon launch a property tax. "China's [banking reserve] move is perceived that the country is capable of slowing down the level of inflation," said Frank McGhee, head precious metals trader at Integrated Brokerage Services, late Friday. "That takes some of the...
| ||||
| Reader Voted Favorite Posts Of 2010 Posted: 17 Jan 2011 06:01 AM PST Tweet
Reading time: 5 – 8 minutes I would like to thank everyone for using the survey letting me know what your favorite posts of 2010 were along with suggestions about how to improve RunToGold. While I expected some posts to do well I was completely surprised with the results in general. As we move into 2011 this feedback will be extremely helpful when crafting additional musings for your assistance and enjoyment. FAVORITE POST How To Attack The Fiat Currency Fractional Reserve Banking Conspiracy – The fiat currency and fractional reserve banking conspiracy has tremendously lowered humanity's standard of living. But there is a peaceful counterattack. This did not really surprise me as when I was researching and writing it I knew it was going to be really good. SECOND FAVORITE POST Learn How To Use A Numeraire – Learn how to use a numeraire for your personal financial statements. I was surprised this received so many votes and comments in the suggestions because it was the first post in 2010. The concept is extremely useful and practical. Based on its popularity, along with the related interview with Anthem Blanchard, I am moving ahead with a large project which will cost a few thousand dollars. It will make applying this concept much easier and less time consuming. Look forward to this advancement as it will be extremely helpful and completely altar your investment perspective. INTERVIEWS Surprisingly it appears the interviews I conducted were extremely popular. In order of votes: David Morgan - Silver Manipulation – An exclusive interview with David Morgan of Silver-Investor.com about the silver manipulation, differences of paper silver and what we are thankful for. Thomas DiLorenzo – Abraham Lincoln Facts – America's Reverenced & Bloodstained Sociopath – Like victims with Stockholm Syndrome the most culpable genociders, like Abraham Lincoln, become the most reverenced sociopaths in revisionist history. Anthem Blanchard - Gold As The Truest Measure Of Value – Anthem Blanchard, son of James U. Blanchard, speaks of gold as the truest measure of value. Comparatively, prices of national currency become irrelevant. Aaron Krowne – How The Securitization Of Mortgages Impacts The Average Citizen – Interview with Aaron Krowne discussing how the securitization of mortgages impacts the average citizen and the current state of the real estate market. OTHER FAVORITE POSTS Fake Tungsten Gold Found – Gold bars with tungsten have been found so for those seeking to preserve capital may consider using alternatives like silver and platinum. California IOUs – One Step Closer To The Brink And About To Break – California IOUs under AB 1506 must be accepted by state agencies for taxes and fees. This minor development poses a threat to the world reserve currency. Is Goldman Sachs Thinking Of Buying Silver – Someone at Goldman Sachs searched Google for buying silver. What is their intention? HR 4248 Free Competition In Currency Act Of 2009 – Dr. Ron Paul has introduced H.R. 4248 the Free Competition in Currency Act of 2009 and for these reasons I support it. SUGGESTIONS There were some great suggestions submitted such as having call-in questions for the podcast, travel tips, tax, asset or estate planning and the most popular of more interviews. CONCLUSION Thank you for completing the survey. As we move into 2011 I will likely be conducting more interviews since that is what so many people liked. 2010 was a rather dull year compared to 2009 but I expect 2011 to be more exciting than 2010. I am encouraged so many people were willing to buy a product if one was offered they needed. I do not even have any potential products in the pipeline and intend for the numeraire project to be a free resource. Because RunToGold is a hobby and because costs can spiral out of control like with this numeraire project therefore I require RunToGold to be self-sufficient. So far that is possible mainly through sales of The Great Credit Contraction or donations. On another note and because there were several requests for what products I do offer I would like to let everyone know about the other site I operate called HowToVanish and we do have several products which are extremely helpful and practical like the Tax Domicile or Bank Privacy reports. Given the probability that states and municipalities will have budget and debt issues it appears that having tax flexibility will be increasingly important. My outlook for 2011 is largely a wait and see. By analogy the football has been kicked but is still in the air. We need to wait and see whether someone catches it or if it bounces and where, etc. There are a lot of known unknowns. Hopefully your personal and financial castle has been constructed on rock and now is the time to upkeep and refine. Because of the interference and noise emanating from policies like quantitative easing the pricing signals are going to be increasingly hard to correctly interpret. So be sure to keep coming around to get a unique perspective of monetary science applied to current events. Thanks for your help and I hope you make 2011 a great year! If you have any relavant comments please leave them. Thanks! Copyright © 2008. This article was published on http://www.RunToGold.com by Trace Mayer, J.D. on January 17, 2011. This feed is for personal and non-commercial use only. Applicable legal information and disclosures are available. The use of this feed on other websites may breach copyright. If this content is not in your news reader then it may make the page you are viewing an infringement of the copyright. Please inform us at legal@runtogold.com so we can determine what action, if any, to take. If you are interested in how to buy gold or silver then you may consider GoldMoney.(Digital Fingerprint: 1122aabbLittleBrotherIsWatching3344ccdd) Copyright © 2011 RunToGold.com. This Feed is for personal non-commercial use only. If you are not reading this material in your news aggregator then the site you are looking at may be guilty of copyright infringement. Please contact legal@runtogold.com so we can take legal action immediately. Plugin by Taragana Tweet RELATED POSTS:
| ||||
| Posted: 17 Jan 2011 05:46 AM PST By Toby Connor, Gold Scents Unfortunately because we couldn't read the writing on the wall we trusted that the Fed would "fix" this minor blip but cutting rates aggressively and spewing out an avalanche of freshly counterfeited dollar bills. It did not fix the credit markets and instead spiked the price of oil to $147 a barrel. That turned out to be the final straw that broke the camels back and sent the global economy spiraling down into the worst recession since the Great Depression. The stock market rolled over into the second worst bear market in history. Amazingly enough we are ready to repeat this process all over again. The writing is on the wall and virtually no one can see it. I'm now going to lay out the the series of events that will ultimately lead to the next leg down in the secular bear market and the reaction by the Federal reserve that will end up pushing the economy over the edge into the next depression. It is going to start in the municipal and state bond markets. I should say it's already started.  So far the stock market is ignoring the cancer growing in the city and state bond markets… just like it ignored the initial stages of the sub-prime implosion in the autumn of `07. At some point it is going to dawn on the market that there may be a serious problem developing. I expect that recognition to come as the market starts to drop down into the next intermediate cycle correction (which I expect to begin next week). If so, then what should start out as just a profit taking correction will turn into a much more serious decline, possibly even erasing all of the fall rally. We've already seen big warning signs that smart money has been exiting this market for a couple of months now, basically since the first signs of stress in the muni markets appeared in November. Big money has used the QE driven rally to unload stock on the clueless public over the last several months. It will begin as the first cities and states start to default. That will correspond with massive layoffs as cities and states will no longer be able to borrow to meet payrolls. Their only option will be to make drastic cuts any and everywhere they can. The Fed will panic and start running the printing presses in overdrive just like they did in `08 and just like in `08 that will spike the price of energy and food (it's already starting. Gasoline is back above $3.00 a gallon and a loaf of bread is pushing $4.50-$5.00). Spiking inflation in a very high unemployment environment will understandably destroy the fragile economy just like it did in `08. (I have no idea why Bernanke thinks rising prices along with 20% unemployment is a good thing.) This will be the period when gold will enter the final leg up in its ongoing C-wave advance and the dollar will collapse down into the 3 year cycle low unleashing the currency crisis we've been expecting. For the next week I am going to run a special $10 trial subscription offer. The trial period will run for the duration of January. At that point one can either cancel the subscription, or if you wish to continue receiving the SMT reports do nothing and your subscription will convert to the regular rate of $25 a month. You can also cancel the subscription and convert it to either the bi-annual or yearly subscription rate, both of which are considerably more cost effective than the monthly rate. To take advantage of the $10 offer click on the link below.        Toby Connor A financial blog primarily focused on the analysis of the secular gold bull market. If you would like to be added to the email list that receives notice of new posts to GoldScents, or have questions, email Toby.
| ||||
| Has Gold Topped Out? Nope, You Ain’t Seen Nothing, Yet! Posted: 17 Jan 2011 05:44 AM PST Goldrunner writes: A Gold Bull Market is much like a bucking bronco in the Old West – constantly trying to buck investors out of the saddle – as many in the Precious Metals universe are calling an intermediate-term top for Gold. Some are even suggesting that we have seen the final top in this Historic Gold Bull. We have a completely different view maintaining that we are very close to the juncture where Gold starts another rip higher into May or June. Let me explain.
| ||||
| Why Gold Is Still a Good Investment Posted: 17 Jan 2011 05:43 AM PST Nothing much in yesterday's market news…so we turn to a remarkable article that appeared in MONEY magazine, proving that MONEY doesn't know anything about money. (MONEY Magazine) – Can you tell when a boom has turned into a bubble? One clue: When pop culture starts paying attention. The housing bubble, for example, brought both the TV show Flip This House and a rival on another network, Flip That House. So if you own a lot of gold, you might regard a recent episode of Saturday Night Live as your first warning. In the opening skit, Bill Hader as China's President Hu Jintao declares that Glenn Beck was right and that "my government should have bought gold. Unfortunately, all our assets were tied up in US Treasury bills." Back in the real world, gold is trading at about $1,400 an ounce, up from less than $500 five years ago. That's a 23% annualized return, far outstripping the gains on stocks (1.1%) or bonds (6.1%). Fear is driving a lot of the rise. MONEY has a point. But not a good one. When pop culture gets excited about an asset class – tech stocks in '99 or housing and finance in '06 – you know it's late in a roaring party. It's just a matter of time before the neighbors get mad and call the cops. But the MONEY writer missed the point. Pop culture has to take the bubble asset seriously. Not as a joke. The author admits that the magazine tried to persuade readers to dump gold last year at this time. That was a costly mistake. Gold went up nearly 30%. But it just shows how hard it is to get to the top of a bubble market. Yeah, but gold is not in a bubble market. It's in a bear market. It will turn into a bubble market later. So far, almost no one is at the party. Ask your friends, dear readers. Ask your relatives. How many of them own gold? Ask the cab drivers, the insurance salesmen, the auto dealers and the psychiatrists. Ask the readers of MONEY magazine. Do they old gold? Nope. It may have just completed its 11th year of a bull market, but people have still not caught on. They think there's something weird about gold…something almost unpatriotic. It is as if you didn't trust Ben Bernanke or something. MONEY goes on to tell readers why they shouldn't buy gold now. Reason #1: "Bad economic news may not make you very much money. Good news could crush you." Of course, it depends on what kind of bad news. And how bad. Historically, gold is a refuge against bad news. And we can't think of anything we'd rather have in bad news…unless the news were so darned bad that we'd rather have a farm far out in the country with a cow, a pig, a flock of chickens and an arsenal of weapons. But how about the good news? Yes, gold would go down in a good news environment. The author talks about the '80s and '90s…as if a re-run of those good news years were possible. Oh boy! This fellow must have read Peter Lynch's advice about not paying any attention to macroeconomics; he must have taken it seriously! Poor lump! You can ignore the macro weather forecast, but only when the weather is good. When the hurricanes and tornadoes start to blow, you need to know what's going on so you can nail up the plywood and head for shelter. What is the likelihood of a repeat of the '80s and '90s fair weather? Well, we'd need to begin with the high interest rates of the early Reagan years (they're extremely low now). Then, we'd need low stock prices (they're 1,100% higher now). We'd need relatively high inflation (CPI touched 13% in the early '80s) rather than the 1.1% core CPI we have now. We'd need a monetary base of about $600 billion (rather than the $2.5 trillion Bernanke is building). We need total debt at about 120% of GDP, instead of 400%. And we'd need a Fed that was determined to stop inflation rather than one that was dead set on causing it! And we'd all have to be 30 years younger, too. All things considered, we'd gladly go back to the '80s – if we could do it. But who could possibly believe we could? Only a writer for MONEY magazine. Yes, if things do go back in time to the '80s and '90s, gold will be crushed. That's a chance we will gladly take. His reason # 2 is no better. "Sure, the dollar has problems. But just look at the other guys." We're not sure what that is supposed to mean. The whole planet's monetary system is based on paper currencies, with the dollar at the center of it. Yesterday, the dollar turned down against foreign currencies. But so what? We can't tell you which of these paper currencies will shrivel up and blow away first…but they're all going to do so. How do we know that? Well, in all modesty, we admit that we don't know for sure. We don't know nothin' for sure. But every paper currency ever tried – apart from present company – has always disappeared. And none has ever survived a complete credit cycle. They're okay on the upside. They fall apart on the downside. We're on the downside of the credit cycle now. Or not far from it. The dollar won't survive. And when it begins to limp and cough badly, some investors may go to Chinese yuan or Swiss francs. Most will want to go to real money…the kind you can trust…the kind that never goes away… …the "last man standing" in a monetary crisis – gold. MONEY has other reasons for telling readers to stay out of gold. They are no better. And at the end of the article, as if the author were not convinced that he had made his case, he tells readers that if they must get into the yellow metal, they should do so with only 1% of their portfolio. And put the money into an option, not into the real stuff. Then, if the bet pays off, the MONEY reader would get a big payday. Wait a minute. Picture the MONEY reader. He's got a $200,000 portfolio. On MONEY's advice, he keeps it fully invested in a balanced portfolio of equities. Then, he takes $2,000 and buys an option on gold. If gold goes up dramatically, his $2,000 option turns into, say, $20,000. But what has happened to the rest of his portfolio? We don't know, but there is a good chance that either his option expires worthless – in which case, he loses his $2,000. Or, if it pays off…and gold is soaring…the rest of his portfolio could register far bigger losses than he recovers from his gold play. Again, MONEY is missing the point. Ordinary people have no business speculating on gold. They should buy the metal as a safety device – to protect themselves from all the dumb policies and speculations of the banks and the Fed itself. The Fed is no longer doing its job. Its reserves are trash – bonds to be paid off by the federal government (which is insolvent) or by underwater homeowners. Since the Fed is derelict, people need to have their own reserves of real money. Gold, in other words. Meanwhile, California is in the same situation as Portugal, Ireland and Spain. It can't print its own money. So, it has to take the austerity route. Here's the latest from Bloomberg: California's Brown Unveils $12.5 Billion in Spending Reductions California Governor Jerry Brown's budget will cut spending by $12.5 billion, including as much as a 10 percent pay reduction for most state employees, aides said. The plan, which Brown is to unveil today, will also raise $12 billion by retaining tax increases due to expire and making other modifications. Some of the revenue will go to cities and counties as part of Brown's plan to transfer spending authority from the state to local governments. Bill Bonner Why Gold Is Still a Good Investment originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day." More articles from The Daily Reckoning….
| ||||
| Posted: 17 Jan 2011 05:38 AM PST Jim Sinclair's Commentary Nothing has changed. It is all smoke and mirrors as our esteemed leaders kick the can one more time down the now dead end road. Dear Jim "As many as a quarter of a million foreclosures that should have happened in 2010 will now be pushed into the 2011 numbers, and added to an already huge supply of bank owned properties. The four biggest banks already have close to $7 billion worth of foreclosed properties (REO) on their books, and Fannie and Freddie have about $24 billion collectively." CIGA UR – Sell The Foreclosure Dump It's coming, no question. Today's report from RealtyTrac serves as a warning to big banks, Fannie, Freddie and local communities; The foreclosure glut is coming, and they'd better be ready to get rid of that glut in a big way. 2010 saw a record number of bank repossessions, over a million, even with a big drop in volume toward the end of the year, thanks to the robo-signing scandal and ensuing foreclosure freezes. "Early indications in January were that this robo-signing related delay will be over by the end of first quarter if not sooner," says RealtyTrac's Rick Sharga. "I think we're going to see a significant spike in foreclosure activity early in 2011, and that will contribute in part to 2011 being a record year."
Deficits Carry Consequences When spending exceeds revenue collected, layoffs within the public sector are inevitable. These are the consequences of the well-established vicious cycle in the US Federal Budget Deficit – The Formula. The public has been told for years that deficits do not matter. They do, unfortunately. Even when the printing press, through timulus and special programs, maintains and protects public employment and services, it devalues the curreny and generates inflation. US Federal Budget (Surplus or Deficit As A % of GDP, 12 Month Moving Average) and Gold London P.M. Fixed: Gold adjusted or real revenues continues to contract at a faster rater than real spending. This places greater pressure on centralize funding, i.e. the printing press, to fill the spending void to maintain the standard of living within the public sector. Real or Gold Adjusted Federal Total Receipts 12-Month Moving Average (TR12MA) AND Federal Total Receipts 12-Month Moving Average Year-over-Year Change (TW12MA12LN) Real or Gold Adjusted Federal Total Outlays 12-Month Moving Average (TO12MA) AND Federal Total Outlays 12-Month Moving Average Year-over-Year Change (TW12MA12LN) Headline: Camden, NJ braces for deep police, fire cuts Yet another crisis is upon this burdened city, among the most impoverished and crime-ridden in the country. Deep layoffs of city workers go into effect on Tuesday — cutting up to 383 jobs, or one-fourth of the city's employees. The exact number depends on whether public workers' unions make last-minute concessions. In any case, the cuts are likely to be deep — and could be a blow to the quality of life in a city where more than half the 80,000 residents, mostly black and Hispanic, live in poverty. Source: finance.yahoo.com
| ||||
| Posted: 17 Jan 2011 05:36 AM PST Courtesy of Greg Hunter's USAWatchdog.com Dear CIGAs, For months now, the Federal Reserve has been worried about inflation being too low. So low, that the Fed claims it is unhealthy to the U.S. economy. When it announced its second wave of money printing (QE2) in early November 2010, the Fed said, "Longer-term inflation expectations have remained stable, but measures of underlying inflation have trended lower in recent quarters. . . . To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to expand its holdings of securities." (Click here to read the Complete Fed News release from November 2010.) That means the Fed started printing $75 billion a month, out of thin air, to finance more than half of the U.S. budget. QE2 is scheduled to end in June, but many predict it will be immediately followed by some sort of QE3. The mainstream media is spinning the latest consumer price numbers as good news, but inflation 2011 is here. The Associated Press called inflation "tepid." The story went onto say, "The Labor Department said Friday that consumer prices rose 0.5 percent last month, the largest increase since June 2009. Roughly 80 percent of the increase was due to higher gas prices. . . . Without food and energy costs, consumer prices only increased by 0.1 percent for the second straight month. This "core" inflation rate has gained 0.8 percent in the past year, evidence that prices are not rising too quickly." (Click here to read the entire AP story.) It would be nice to live in a world where you don't need food or energy, but that simply is not the case. On the other hand, the Fed plan to stoke the fires of inflation is working nicely according to the latest report from economist John Williams at Shadowstats.com. Williams strips away all the accounting gimmicks that make inflation look tamer than reality. The Shadowstats.com report last Friday said, "There are numskulls in the financial media — toadies to the Federal Reserve — who would like to think that energy and food inflation do not count. Simply put, the monthly December inflation releases for the CPI-U (annualized 6.2% inflation), CPI-W (annualized 7.8% inflation) and PPI (14.0% annualized inflation) were disasters . . ." The credit or the blame for the big spike in inflation is the direct fault of the Fed. "The sharp increases in December energy and food prices were not due to normal price volatility in those areas, instead, they were created directly by Federal Reserve Chairman Bernanke's ongoing push to debase the U.S. dollar — to destroy the purchasing value of the U.S. currency," said Williams. (Click here to go to Shadowstats.com)
| ||||
| Precious Metals Default Scenarios Posted: 17 Jan 2011 05:32 AM PST By Jeff Nielson, Bullion Bulls Canada For obvious reasons, there has been a great deal of discussion about actual, formal "defaults" in the gold and silver markets. Among those "obvious reasons" is that informal defaults are apparently already taking place in both markets. Beginning in the London gold market over a year ago, and now rumored to be occurring in New York's "Comex" silver futures market, buyers who have legally contracted to take "physical delivery" of the metals they have purchased are said to be accepting large, paper bribes to accept a "cash settlement" instead. There are many reasons for investors to take such "rumors" seriously. Empirically, we see the premiums being charged for physical bullion (even from large, established dealers) rising to levels never before seen (around the world). This strongly suggests a very tight market for bullion. This is confirmed through the anecdotal reports of both industrial users and large institutional investors (such as Sprott Asset Management) that they are having a great deal of difficulty locating any large quantities of bullion available for sale. In theoretical terms, we are merely seeing the culmination of arrogant bankers attempting to defy the elementary laws of supply and demand for over a quarter of a century. Even those with no training in economics know the basic rule (since it is merely an expression of common sense): when prices rise, demand falls; when prices fall, demand rises. There are many derivative principles which flow from this one basic law. Among the most salient (and the one apparently beyond the comprehension of bankers) is that if you under-price any good it will be over-consumed. I have demonstrated the unequivocal truth of this principle previously, and so will not do so again. Suffice it to say that in deliberately under-pricing gold and silver for well over a quarter of a century (through their relentless manipulation of these markets), the bankers have caused more than 25 years of excessive demand – where previous surpluses in these markets have been transformed into huge supply-deficits. In the gold market, where virtually all of the bullion ever produced has been conserved, this distortion of markets has merely resulted in a massive transfer of bullion: out of the vaults of the West and into the vaults of the East. The situation in the silver market is entirely different. Being both much cheaper than gold, and possessing even more superior chemical and metallurgical properties, silver was written off by those with no understanding of precious metals as merely an "industrial" commodity. As a matter of common sense, the rapid increase in industrial demand for silver must make it more "precious" rather than less so. Illustrating this elementary logic, the combination of gross under-pricing and surging industrial demand has served to decimate global silver stockpiles and inventories. Noted silver researcher Ted Butler has estimated that global stockpiles of silver plummeted from over 6 billion ounces (fifty years ago) to approximately 1 billion ounces today. Silver is literally six times "more precious" today than it was a half-century earlier. In terms of "inventories" (the amount of silver actually available for sale today), the destruction caused by the bankers is even more apparent. Between 1990 and 2005, global silver inventories plummeted by roughly 90%: from over 2 billion ounces to little more than 200 million ounces. Since 2005, there has been a massive inventory-sham perpetrated by the bankers and the quasi-official "keeper of records" for the gold and silver sector: GFMS and the CPM Group. Through the farcical practice of adding the paper-bullion of silver "bullion-ETF's" to inventories and pretending this represents "new silver", inventories have magically "risen" by roughly 400% since then – despite the seemingly incongruous facts that silver demand has increased dramatically, while supply has remained flat. In fact, any bullion actually held in a bullion-ETF cannot be an "inventory", since it fails to satisfy the basic definition: it is not for sale, but rather is privately held by the unit-holders of these funds. How can the holders of such funds sleep at night, knowing that the legal "custodian" of their bullion is telling the world that their silver is "for sale"? More articles from Bullion Bulls Canada….
| ||||
| Dismal Holiday Shopping Season Dooms U.S. Economy Posted: 17 Jan 2011 05:32 AM PST By Jeff Nielson, Bullion Bulls Canada Unlike most market commentators, I generally wait until about mid-January before "reporting" on the U.S. holiday shopping season. There are two good reasons for this. First, there is no point in trying to interject any rationality during the shopping season, since it will simply be drowned-out by the mind-numbing hype "predicting" a great holiday shopping season for the U.S. The second reason to delay my own analysis of this critical component of the U.S. economy is that by mid-January the real numbers come out – and it becomes impossible for the U.S. propaganda-machine to continue to distort the truth. Indeed, the propagandists were previously forced to reluctantly acknowledge that 2008 and 2009 were the two worst U.S. holiday shopping seasons since records began to be kept on this subject. Thus, when I report that the 2010 U.S. shopping season was even worse than 2008 and 2009, it will hopefully cause those deluded by all the hype to pause and reconsider the facts. Whenever discussing retail sales statistics, the first point which must always be made is that these numbers are never adjusted for inflation (not even with the phony numbers of the U.S. "consumer price index"). This leads to a very obvious analytical point: in order to determine if there was any real growth in U.S. retail sales (i.e. retailers actually selling more goods), we must subtract the (real) rate of inflation from the gross (unadjusted) increase in retail sales. Doing this reveals the ugly truth. The most important number we need to begin this calculation is the real rate of inflation. As regular readers know, there is only one destination for those who want realistic statistical information on the U.S. economy: Shadowstats.com. Visit that site, and John Williams (the respected economist who runs the site) will tell you that as of his most recent reading, U.S. inflation was still running at about an 8.5% annual rate of increase. Now the raw data from the U.S. retail sector. Comparing December 2010 to December 2009, we see that total retail sales rose 7.9%. Subtracting 8.5% from that number, we see that the sales of goods in the U.S. fell in December 2010 – to below the level of the two worst (previous) shopping seasons on record. If we look at the full-year numbers, the picture is even worse. Total U.S. retail sales in 2010 were up 6.6%, nearly a full 2% lower than the rate of inflation. This dismal picture is confirmed when we start a sector-by-sector review of U.S. retailers. Sales for "local merchants" were actually down 1.3% this December (even before adjusting for inflation). Similarly, sales at U.S. "general merchandise stores", "electronics stores", and "food stores" were also lower – even before subtracting inflation. Looking at the retail chains, sales were up a mere 3.1% in December 2010 over December 2009 (more than 5% below the rate of inflation). However the real "horror story" here is when we divide these retailers between "luxury outlets" and "discount retailers", the latter could only manage a totally inadequate gain of 1.2% in December, while the former rose by 8.1%. In other words, the U.S. luxury sector, the best segment of the entire U.S. retail sector (by a wide margin) was still not able to boost sales gains to a level equal to the rate of inflation – meaning even these retailers also sold fewer goods in December 2010. More articles from Bullion Bulls Canada….
| ||||
| Posted: 17 Jan 2011 05:31 AM PST Bullion Vault Chinese gold demand also set to surge as Yuan currency goes international… WHILE CHINA is taking a greater portion of our financial attention on a daily basis, it seems to us that the sheer size of China and its continued growth has not been factored into the world economic perspective, even now, writes Julian Phillips at the Gold Forecaster. One of the consequences of profit-driven capitalism in the past was the relocation of manufacturing from high-cost, developed countries to the lower cost country of China. US corporations that did that, have enjoyed better-than-ever profits, but in the process have educated new, Chinese, lower-priced competition that will overwhelm us all in the future. The enrichment of China and its arrival on the world scene will surpass the US as the largest world economy by 2020 at the latest (we would not be surprised if this happened even before 2015). This will trigger a financial tsunami that will change they way we think and invest. We here at the Gold Forecaster have been following the steady progress of the internationalization of the Yuan since it began. The goal that seems likely to be reached sooner rather than later will be for the Yuan to be a competing global reserve currency. Effective immediately, Bank of China's US individual customers can now open a Yuan denominated savings account with a $500 equivalent minimum balance. The bank also offers certificates of deposit in 6-month and 1-year terms with a minimum of $1,000 equivalent. Now watch the rush. We don't believe that those who do it hoping to experience an appreciation of the Yuan will see that. But such investor objectives will create a huge demand for the Yuan. For interested readers, the account opening procedures are simple– there is an application form, a W-9 tax form, and a signature card. Applicants are also required to provide a government-issued ID and one other form of identification such as a credit card, employee ID card, insurance card, etc. You do have to show up in person. Businesses can also open Yuan accounts with a $5,000 equivalent minimum and requisite entity paperwork like Articles of Organization, etc. At this time, Yuan cash cannot be withdrawn from the account. The bank does provide currency exchange services between Dollars and Yuan at its Chinatown branch in New York; current limits are up to $4,000 per day, and $20,000 per year. China is doing this as part of a long-term plan to make the Yuan become a fully-convertible competing global reserve currency. Many sovereign nations are holding Yuan in reserve instead of just Dollars, and Chinese cross border settlement is now frequently being transacted in Yuan instead of Dollars because of new clearing and settlement platforms that have been established in Hong Kong. After Yuan exchanges are established in the US, Europe will be next. Then as we forecast, China will price its goods in the Yuan and then pay in Yuan.
| ||||
| "End of America" is Nigh Posted: 17 Jan 2011 05:31 AM PST Bullion Vault Gold Prices long warned of a genuine crisis in the world's No.1 currency… I KEEP GETTING subscriber e-mails asking me what good it is to buy stocks when the US Dollar will soon be destroyed, taking the value of most equities with it, writes Dan Ferris, editor of Extreme Value in Steve Sjuggerud's Daily Wealth. This question is a better one now than it's ever been in my lifetime. I remember many years ago, in the 1980s and early 1990s, when I started investing on my own. Back then, I often read arguments by various gold bugs and libertarian-leaning economists about how the US Dollar was on a path to total destruction. Even then, I was often reminded that all fiat currencies meet the same fate, and that the Dollar would be no different. Fast-forward a few years to 1997, when I started communicating that same message for a living. Though I remained more concerned with other things, I kept revisiting this message. I kept thinking the Fed's actions would have dire financial consequences for all of us…but for about 10 years, nothing apocalyptic happened. Every time it looked like the end was finally nigh and the day of economic, political, and financial reckoning was upon us, the Fed would ease, the market would rebound, and away we went on another bullish tear. But at long last, it seems as though we've finally arrived at the point of no return. Anyone who lends the US government a penny at this point is simply suicidal. And you don't have to guess about this, either. Listen to the market. It's trying hard to tell you something very important… More than once, I've said late 2008 was the blow-off top of a multi-decade bull market in Treasury bonds. That's still correct, as interest rates continue to make higher highs and higher lows. Treasury bond prices move opposite to interest rates. So they're making lower highs, and soon, I expect, even lower lows. Thirty-year US Treasury bonds were yielding as little as 3% in late 2008. Today, they're yielding over 4.5% – an enormous move. If interest rates double in the next year or two, it won't surprise me a bit.
| ||||
| Posted: 17 Jan 2011 05:28 AM PST The Mogambo Stupidity Prize (MSP) is a not-so-rare honor bestowed to highlight the laughable kind of stupidity about inflation that is so prevalent these days that I find myself screaming at the radio, the newspaper and the TV, wildly ranting, arms akimbo like some kind of demented old man, about how inflation is the Worst Thing That Can Happen (WTTCH), working myself into a fit of uncontrolled anger that goes beyond "outrage" and into some dark, dangerous place in my heart where enemies, both real and imagined, are rounded up and thrown into a hellish prison, and I reign victorious in abolishing the Federal Reserve, reinstalling the gold standard for the US dollar, thus abolishing inflation forever and becoming a national hero whose courageous victory will live forever in the hearts of the people and in the history of the United States and the world, which quickly realized the beauty and simplicity of the gold standard in delivering stable prices and higher standards of living for everyone, instead of the grinding misery and suffering of inflation under a standard of expanding a fiat currency. Thus, I will be loved and revered by everyone, except possibly my kids, who will probably still be insisting that they will hate me forever unless I let them go to Disney World with a guy they know as Dave, and his girlfriend, Krystal, who is a professional-pole dancer. Naturally, I replied, "Disney World? Pole dancer? Sure! But only if I can come, too!" They rudely said, "No" and made disgusting gagging noises. So I, indignantly, said, "No!", too, but with an exclamation point to show them I was serious and my feelings were hurt. Ergo, the aforementioned "hate unto death" pour moi. But that is not important, if a cataclysm of inflationary horror that will destroy the USA is not important, because we were originally talking about the Mogambo Stupidity Prize (MSP), but somehow veered off into another of my rambling harangues about the Federal Reserve destroying the purchasing power of the dollar with their relentless, ruinous, catastrophic over-creation of money, which seems important to me in that "You are soon going to be killed. Do you want to know why?" way, which seems to satisfy a basic human hunger, as evidenced by a lot of movies showing a guy dying of a gunshot wound, and he says to his killer, "Before I die, I want to know your name!", which is pointless because he will be brain-dead in a few minutes and he will forget whatever name he hears. Moron. Abruptly, I now veer BACK to the subject, which is to announce that The Financial Times is this week's winner of the MSP in recognition of their winning entry in a January 8 editorial where they wrote, "Higher prices are not something to be scared of. Indeed, they are a necessary precondition to make supply catch up with demand." Hahaha! Higher prices are not something to be scared of? Hahaha! You know that this is stupid AND funny because of the way I laughed "hahaha!" each time I wrote it, which was, at last count, two! Well, as you knew I would, I have some Hot Mogambo News (HMN) for these Financial Times weenies: Higher prices ARE something to be "scared of" because it is exactly tantamount to saying, "Getting a bad, debilitating disease is not something to be scared of. Instead, it is a precondition to making advances in medicine catch up with demand." Hahaha! I wonder how these Financial Times morons would like to suffer from disease until production of curative medicine increases in response to the demand for cures, in the meantime suffering more and more, and then more and more suffering every month, suffering and suffering until, hopefully one day, the supply of medicine catches up with demand, and their disease is cured, although they will suffer a permanent decrease in health from the damage done. They surely must like it as much as they like inflation, paying higher and higher prices for food until production of food increases in response to the shortage causing the higher prices, paying higher prices, and then more higher prices, and then more and more, every month, higher and higher, and then the prices of everything else go up in price, too, higher and higher, month after month, businesses being pressured to raise the "wage" part of that important land, capital and labor triumvirate, as are sellers of land and credit, even though your income will surely not increase along with prices, meaning that you will have spent so much money on subsistence rather than investment that you will have suffered a permanent decrease in financial health from the damage done. As for me, I choose not to suffer inflation at all, and merely buy gold, silver and oil, which is so easy that I cannot help but exclaim in a giggly kind of rapturous glee, "Whee! This investing stuff is easy!" Inflation and the Damage Done originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
| ||||
| John Hathaway: Debasement, spending sprees argue for gold Posted: 17 Jan 2011 05:26 AM PST 12:18p ET Monday, January 17, 2011 Dear Friend of GATA and Gold: Tocqueville Gold Fund manager John Hathaway reviews gold's prospects and those of gold mining companies in the fund's year-end investor letter. Hathaway writes: "While many observers feel that the gold rally has been overdone, is too crowded, resembles a bubble, or whatever, the simple fact remains that central banks of the Western democracies appear on course to debase paper currencies. On the one hand, currency debasement is the path of least resistance to grapple with the seemingly intractable fiscal issues of record deficits and unchecked growth in entitlements. On the other hand, persistent economic weakness translates into political pressure for central banks to pursue extremely lax monetary policies. Under these circumstances, it is hard to argue against the notion that some exposure to gold offers protection against monetary damage still to come." You can find Hathaway's letter at the Tocqueville Internet site here: http://www.tocqueville.com/media/Tocqueville_Gold_2010_Year-End_Investor… CHRIS POWELL, Secretary/Treasurer Help keep GATA going: GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: http://www.gata.org/node/16
| ||||
| Only gold will hold its own among currencies, Hinde study concludes Posted: 17 Jan 2011 05:24 AM PST 11:58a ET Monday, January 17, 2011 Dear Friend of GATA and Gold: Hinde Capital in London, whose CEO, Ben Davies, has become a gold advocate of worldwide renown over the past year, has published a comprehensive study of the world's financial situation as it relates to gold. As currencies race to devalue, the study finds, gold is the only currency likely to hold its own, and Hinde more or less advises people to get all the metal they can and then find a safe planet to keep it on. The study is titled "Nessun Dorma" — opera talk for "None Shall Sleep" — and credits GATA's work exposing the central bank gold price suppression scheme. You can find the study at GATA's Internet site here: http://www.gata.org/files/HindeCapital-NessunDorma-01-17-2011.pdf CHRIS POWELL, Secretary/Treasurer Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: http://www.gata.org/node/16
| ||||
| Bullishness From COT and the Physical Market for Silver Posted: 17 Jan 2011 04:54 AM PST Despite a relatively stable silver price, The COT structure continues to change for the better. Though the following information ends on 1/11/2011, the bullish structural changes continue to occur, setting the stage for much higher prices in the future. Though I’m not a technician / market timer, the COT report and the supply-demand fundamentals point towards higher prices in the near term. Of course, I may be wrong with this opinion and we could certainly see more downside pressure before the next breakout, but the changes in the futures market, as well as constraints in the physical market continue to make me think the next big move will be to the upside. Recently, John Embry of Sprott Asset Management was being interviewed on King World News, where he made a very telling comment regarding the tightness in the physical market. In more or less words he described the physical constraint not just as tight, but very tight-- and he would know, as his company began a physical silver trust which is still waiting for all the silver to be delivered to the warehouse over two and a half months later. Complete Story »
|
| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment